23 February 2009 22:08 [Source: ICIS news]
HOUSTON (ICIS news)--The Dow Jones Industrial Average set an 11-year low with its close on Monday, taking US chemical stocks on a continued downward slide.
The Dow Jones average fell 3.4% on Monday to close at 7114.78, or about 172 points below the 7286.27 it closed at on 9 October 2002.
Accordingly, shares of nearly all major chemical stocks fell, with Ferro ($1.52, down 22.5%), WR Grace ($5.71, down 14.4%), Mosaic ($35.89, down 15.5%) and Intrepid Potash ($19.82, down 13.2%) leading the way down.
Dow Chemical also sank to yet another low, closing at $7.41 on a 8.5% decline. It’s the lowest the ?xml:namespace>
NOVA Chemicals was one of the only companies to buck the trend, closing at $5.21 for a gain of nearly 300% on news that the International Petroleum Investment Co. (IPIC) plans to buy the company in a $2.3bn (€1.8bn) deal worth $6/share. That would be a premium of almost 3.5 times higher than the company’s Friday close on the New York Stock Exchange.
Also, US paints and coatings maker Valspar rose 3% to $16.49, when its 1Q earnings were in line with expectations and cost-saving measures were announced.
The overall stocks slide came largely due to concerns and uncertainty surrounding the
Citigroup was in discussions with regulators about a plan for the
Stocks initially rallied on the Citigroup news, but fell sharply in mid-day trading with some analysts seeing the Citigroup report as a sign of more economic weakness and a step toward the nationalisation of banks.
On the heels of that news,
The programme, launched in response to nationalisation fears, is set to begin on Wednesday.
($1 = €0.78)
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